How did the First World War create a new economic situation in India ? Explain.
Generated by claude-sonnet-4-6 · 2026-06-15 06:57 · grounding rag
Model Answer
The First World War created a new economic situation in India in the following ways:
- Rise in defence expenditure: The war led to a huge increase in defence expenditure, financed through war loans and higher taxes. Customs duties were raised and income tax was introduced.
- Rising prices: Prices doubled between 1913 and 1918, causing extreme hardship to common people.
- Forced recruitment: Villages were forced to supply soldiers, causing widespread anger in rural areas.
- Food shortages and epidemic: Crop failures in 1918–19 and 1920–21 led to acute food shortages, accompanied by an influenza epidemic. Around 12–13 million people perished due to famines and the epidemic.
Source: The First World War, Khilafat and Non-Cooperation, Chapter 2
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Explanation
- This is a 3-mark "explain" question, so examiners expect 3 distinct points — each clearly stated.
- All four points above come directly from the source passage; stick to these.
- Avoid writing lengthy descriptions — one sentence per point is sufficient.
- Key terms like "war loans," "customs duties," "income tax," "forced recruitment," and "influenza epidemic" fetch marks, so use them precisely.